Tax time scam alert

Who doesn't want a tax refund?

Last updated: 23 April 2015

You might be wary of the email promising you an inheritance in Nigeria, but how about the ATO calling you about an unexpected tax refund? Even if it sounds plausible, it's probably about as legit as your Nigerian windfall.

The end of the tax year is high season for scammers and they seem to be especially early this year: NSW Fair Trading has already issued a warning about phony callers and emails claiming to offer tax refunds.

Scammers trying to steal your identity

Here's how the scam works. Fraudsters posing as Australian Tax Office (ATO) agents claim you overpaid your taxes and are eligible for a tax refund. They may ask you to:

pay an upfront administration or transfer fee

fill in a form with your financial details

'confirm' your personal data over the phone.

Be very careful with providing anyone your personal data – it may be used to steal your identity or hack into your bank account. The ACCC warned last July that Australians had already lost $300,000 to tax scammers in that year alone. The ATO never asks for personal information over the phone, via SMS or email.

What to do if you suspect you're being scammed

If you receive a suspicious phone call, just hang up.

If in doubt, ask for the name of the caller, contact the ATO or the organisation they claim to call from to check the caller`s authenticity.

Delete emails asking for your personal details or a 'refundable' fee.

Never open attachments or links in emails: scammers use malicious software to get your data and set up bogus websites, which can closely resemble the original ones.